Ok, we're moving into a new section of the book which talks about portfolio management. The basic summary is quite simple - a unified approach towards portfolio management trumps the approach where the markets get segmented.
What this means to me is quite simple, wherever possible, try to start with the entire universe of stocks. In my case, I review the 700+ counters available on SGX through my broker when looking for counters with the highest yields.
Stick to table of stocks which typically gives higher yields is self defeating because even Venture does not give 6% yields anymore at its current price. Instead, the table of yield stocks should be updated from the entire universe before I target a set of stocks for analysis.
The chapter also hints that some forms of analysis might be superior depending on the sector you are analysing :
Dividend discount models work better ......